Bicycle Manufacturer Business Plan


Bicycle Manufacturer Business Plan


Concrete Carbon Parts, a California-based company, designs and markets a variety carbon fiber seatposts for road bikes and mountain bikes. The company was formed as a California L.L.C. The company was established as a California L.L.C. and has been operating out of the home of the owner for the past year. The company has sold individual seatsposts through the Internet to customers and the owner wants the company to go to the next level.

The products

Concrete Carbon is a supplier of high-end carbon fibre seatposts. The shafts will be made out of custom drawn carbon fiber and the head unit will be CNC machined out of 6000 series aluminium. Josh developed a post design that is safe and secure through extensive torture testing. Concrete Carbon is able offer a high-end, lightweight seatpost for road and mountain biking applications. These posts are very comfortable and safe due to the natural ability of carbon fiber to disperse vibrations. Concrete Carbon has never had a seatpost go sour.

Concrete Carbon’s competitive advantage lies in the product. It is capable of offering a range to best fit each rider. The range of posts are based on rider weight. No other manufacturers offer custom fitting. This is quite valuable as the ride, safety margin, and weight are all significantly effected by the way the post is tuned. By having the post tuned to rider’s specific weight range, the maximum weight is possible. Ride quality and safety will also be improved by allowing for sufficient flex, which dampens road and trail vibrations. The post’s flex is so great that it can be compared to suspension.

Concrete Carbon will utilize an outsourcing model to produce. Concrete Carbon can then concentrate on what is most important, serving the customer. Two industry leaders will outsource production. Josh will supply the subcontractors with the design details. The parts will be made to order by them. Josh&#8217, Concrete Carbon’s prior networking connections, was a key factor in selecting the subcontractors. They were also selected for their capacity to scale production as required.

The Market

Concrete Carbon currently only sells seatposts direct to customers. In order to grow the business, Concrete Carbon needs to begin selling to new customers. Concrete Carbon has decided to start selling to distributors. With 3433,0009 potential customers, the annual growth rate for individual customers stands at 10%. Distributors are at 4%, with 14 potential customers. While the growth rate of distributors is not that high the sheer volume that distributors will sell and buy relative to the individuals makes the potential market very exciting.

Marketing

Concrete Carbon will utilize two marketing strategies that are very different to reach potential customers segments. Concrete Carbon will use the website to make concrete carbon’s parts more visible to consumers. The website has been in operation for a year. Continuous improvements will be made to it. Concrete Carbon will participate in various trade shows and develop business relationships with different distributors. The trade shows offer the best opportunity to form close relationships with prospective distributors. Concrete Carbon will have the opportunity to build trust through participation at trade shows, since business relationships are built on trust.

In Year 1, sales will reach $119,000, and rise to $332,000 by Year 3. Concrete Carbon Parts will see a steady increase in profitability and gross margins over the next three-years.

1.1 Keys to Success

  • Products precisely designed.
  • All promises to customers and vendors must be kept.
  • Strict financial controls.

1.2 Mission

Concrete Carbon Parts is dedicated to creating the highest quality carbon seatposts. It will emphasize lightweight, comfort and a realistic safety margin for all of our products.

1.3 Objectives

  • To be the most trusted carbon-seatpost bicycle manufacturer.
  • Concrete Carbon must increase its sales in order to become a sustainable company.
  • You can significantly increase your sales by entering a new market segment.


Pasta Manufacturer Business Plan


Pasta Manufacturer Business Plan


The Pasta Tree is the only fresh pasta retail producer in the city of Springfield. The Pasta Tree has sold fresh pasta products at its own shopfront as well as in five local natural food stores over the last three years. For the past three year, The Pasta Tree has enjoyed a loyal customer base which has led to an increase in sales of 15% every year. The Pasta Tree expects to gross over $300,000. This was made possible by an initial investment from $80,000

The Pasta Tree is planning to expand its operation to include distribution to the major supermarket chains within the entire city. There are fifteen supermarkets in Springfield. More than thirty-five smaller grocery store serve the surrounding areas and new suburban neighborhoods. The Pasta Tree is required to double production in order for it to meet the increasing demand. Only a portion will be possible through owner funding or internally generated cash flow. Pasta Tree will receive a $50,000 loan to finance the expansion and renovation of its production facility. The projected sales for the next three-years are based upon current sales success in Springfield with its target customer base.

This plan will see sales revenues increase to nearly $420,000 by year 3.

Pasta Tree is situated in a 3,000-square-foot facility. This facility serves two purposes: as a shopfront and as a production facility. The expansion will see production take up 3/4 of the space. $10,000 will be required to prepare the new production space. An additional $30,000. will be spent on the purchase of new equipment. To meet the increased demand, the company must also upgrade its packaging equipment. The cost of this upgrade will be $10,000

Pasta Tree’s new marketing campaign will be launched in supermarkets and grocery store that carry its products. To attract new customers, we created eye-catching in-store displays. The displays will also hold discount coupons to promote sales to new customers.

The Pasta Tree will become a major sponsor of The Canal Run, which raises money for children’s cancer research.

1.1 Objectives

The Pasta Tree’s goals are:

  • Increase production without compromising product quality
  • Establish strong sales in major supermarket chains around the city.
  • Ensure cost control and efficiency during expansion.

1.2 Mission

The Pasta Tree’s mission is:

  • Quality: Our products are the highest quality and the freshest pasta available to the consumers.
  • Value We offer more value to consumers with healthy products that have incredible flavor.
  • Integrity Our customers rely upon the quality of our pasta products. Trust in The Pasta Tree is built on our commitment to the highest standards. Our customers will be satisfied with our products.


Salsa Manufacturer Business Plan


Salsa Manufacturer Business Plan


Salvador’s is a producer of authentic Hispanic foods, such as salsa and chips. Their products are considered to be at the highest quality and most affordable price point on the market. Salvador’s has been in business now for three years and has grown in popularity. Salvador’s was originally a business that targeted the Hispanic community, but has since expanded to appeal to a wider audience.

Salvador’s has several goals that they want to achieve in the next three-years. First, a two-million dollar increase in sales by Year 5. Salvador’s also would like gross margins to be above 55%. Salvador’s wants to distribute their product through 40 outlets. They aim to be the best Hispanic food producer in the region with an expanding geographic distribution.

Currently, Salvador’s has two main line of products. Their salsa is the company’s flagship product. It is well-known for its freshness, uniqueness and high quality ingredients. Originally introduced in one temperature, hot, the market demand has asked for milder temperatures and Salvador’s has responded with both a medium and mild version. To compliment their salsa, Salvador’s offers fresh chips in both yellow and blue corn.

Salvador’s has chosen three primary customer groups to target their products. First, grocery stores. The grocery stores will then sell directly towards the end consumers. This market is currently growing at 75%, with 53 potential customers. The wholesale distributors is the second group. This segment is growing at 100% with five potential distributors. Restaurants account for the last customer segment. This segment has a 45% annual growth rate. There are 18 potential restaurants customers. Salvador’s originally targeted Hispanics, as we have already mentioned. Salvador’s realized that their products are more popular than they thought and responded accordingly. The Hispanic community was targeted initially because of its incredible growth rate. The community is growing at 22% per year, nearly twice the rate of the US average.

Salvador’s high cost point has many direct competitors. Salvador&#8217’s can take advantage of this situation to continue being the leader in authentic Hispanic cooking.

Salvador’s strong management team, Ricardo Torres (Pat Torres), will ensure long-term growth. Pat has 12 year experience in the food and beverage industry. Five years ago, Pat was the manager of a four-store Tex-Mex restaurant chain. Pat gained tremendous insight and industry knowledge, which reinforced his decision to open a new business. Ricardo brings Salvador’s over six years of financial control experience that was gained as a CPA with Arthur Andersen. Salvador’s management team will be able to help Salvador achieve his dream of becoming the most prominent Hispanic food manufacturer.

Salvador&#8217’s has started to achieve profitability, and the company expects a modest net income in three years. Sales will provide the modest profit margin necessary to achieve this level of profitability. The plan’s financials further emphasize the business’s exciting nature.

1.1 Objectives

  1. Over the next three year, sales will increase significantly.
  2. Gross margins should be increased by % over current product lines and maintained at the same level.
  3. Create new products and services to satisfy market demand. Again, this is at a high gross profit.
  4. You can increase inventory turnover and lower the cost of goods, while still maintaining the product’s high quality.
  5. To offer Hispanics rewarding and satisfying jobs.

1.2 Mission

Salvador&#8217’s is known for its authentic hot salsa which is full of Hispanic heritage. Family recipes that have been passed down through generations are rich with ethnic heritage. Knowledgeable consumers were looking for authentic products, filled with the best ingredients. The consumer was crying out for a change! They wanted authentic Hispanic salsa.

Salvador’s answered this call, first with its hot salsa, then adding mild and extra hot salsa, followed by yellow and blue corn chips. We are constantly looking for the right product to meet the needs of our customers.

We can only improve on the products and services that are already in stock and provide new services for areas in demand to ensure our success within a market driven entirely by consumer desire.

1.3 Keys to Success

  1. High quality products that differentiate themselves from all others in taste and price.
  2. Service, support and a greater than average margin for our dealers.
  3. Increase gross margin to %
  4. In order to increase sales volume, introduce new products.

Construction Manufacturer Business Plan


Construction Manufacturer Business Plan


Fiberglass World, Inc. (Fiberglass World) is a start-up manufacturing company with patented products that will revolutionize the building industry. Fiberglass World is the exclusive manufacturer in the United States, and protected by a licensing agreement with the inventor of the Fiberglass Plate Products, Mr. John Thompson.

Fiberglass World’s head is Mr. Thompson. He has extensive industry research experience as well as direct knowledge. Thompson has been involved with fiberglass for over 40 years and has seen many innovations in the automotive, construction and aviation industries. Since long, the construction industry has needed to innovate. This is what prompted him to develop an insulative fiberglass roof tile that can be manufactured in any color desired, and is price competitive. The same technology was used to create the exterior fiberglass panel. Both products have the moldable, textured appearance of stucco.

Fiberglass World produces insulative fiberglass roof tiles as well as exterior insulative fiberglass structural wall panels. These products can be called Fiberglass Plate Products, or Fiberglass Plate. These products are protected by two United States patents.

1.1 Mission

Fiberglass World strives to be the majority provider of this breakthrough product. Fiberglass World is committed to achieving this goal by ensuring high quality, prompt delivery and competitive pricing.

Success: 1.2 Keys

  • Fiberglass World has designed insulative fiberglass roof tiles, and insulative fiberglass structural exterior panels.
  • Fiberglass World is America’s exclusive manufacturer and is protected by a license agreement with the inventor.
  • The company will control its production line to assure that quality is met.


Lift Bed Manufacturer Business Plan


Lift Bed Manufacturer Business Plan


Load Hog Inc. was formed by John Kowalski (Load Hog), in December 1997. The company is an automotive aftermarket manufacturer that manufactures a revolutionary patented device which transforms ordinary pickup trucks in to full-on dump truck. The innovative pneumatic device, which is almost maintenance-free, is invisible when it is not in use and weighs in at 120 pounds. In New Zealand, in the late 70&#8217’s and early 1980&#8217’s, the pneumatic hoist was invented. It uses the exhaust gases from the vehicle to lift the bed and fill the lifting envelope. Load Hog’s inclusion of an air compressor on-board has eliminated the obvious hazards of the original plan.

Load Hog wants to secure $4,000,000 in staged capital over a 18-month period. This will allow them to run an aggressive public relation and advertising campaign that educates the truck-owning and purchasing public about the Load Hog Program’s capabilities, costs, and availability. These funds will help to fund the initialization for the advertising and public relation plan. It will cost $40,000 for its first phase. The remaining funding from the first phase will be used to support additional staff members (Sales Manager), inventory and manufacturing equipment, as well as continuing operations.

Phase I: $175,000 This phase has been accomplished with debt capital and has been committed and closed.

Phase II: $200,000 The second phase will be completed with additional debt and is already committed.

Phase III & IV: $1 million/$17 million. These phases can be done with both debt and equity. These funds will be used to continue marketing and sales efforts, increase sales staff, continue operations expansion through the purchase of capital equipment, expand manufacturing operations and provide working capital to meet the increasing demand. As reflected in the attached**, Ford’s recent commitment to include Load Hog as part of the Super Duty Dealer Ordering Guide 2002 will help boost our revenues.

The purpose for the phased approach in funding is to allow an organization to integrate new business and grow at a structured and controlled pace. Each phase of the growth strategy is designed to be followed in a sequential order. If a single investor is interested, each element can be pursued individually or grouped together as a longer-term deal. The addition of a sales manager allows the president and current staff to quickly respond to potential investors. It also helps to improve assembly, procurement operations, engineering upgrades, product development, and other aspects.

**Appendix are not available for the sample plan.

1.1 Keys to Success

The company’s further success will depend on the following factors:

  • Securing financing for product development and marketing.

  • Name recognition.

  • Stabilizing OEM relationships and building the distribution system.

  • Management of the supply chain to ensure consistent component sourcing

1.2 Mission

Load Hog’s mission is to teach truck owners how to make the most of their vehicle. Strategically, we have positioned ourselves at the top of the quality pyramid featuring a combination of superb technology, extraordinary customer service, and an almost fanatic attention to quality assurance. Our strategy is based on continued research and development of our existing product, as well expanding our offering to satisfy customer demand and expand our market. We will be supported in this growth by our field force, advertising, public relations, and our growing e-commerce effort. We will keep our presence at all levels of trade shows, including regional, national and local.

1.3 Objectives

Load Hog has a single facility in Aliquippa that includes 1,200 square feet office space and 8,600 feet of manufacturing/ assembly space. The current plant is adequate. However, as we ramp up, there will be ample office space and manufacturing spaces within walking distance.


Clothing Manufacturer Business Plan


Clothing Manufacturer Business Plan


Opportunity

Problem

New Look plans to strengthen its position as a retail men&#8217s clothing business and become a manufacturer of upscale clothing for men aged between 20- 40. New Look is responsible for the development of the clothing line and supports it with promotional campaigns and advertising. The company plans to strengthen its partnership with retailers by developing brand awareness. New Look wants to market their line as an alternative and unique to existing clothing lines. They also plan to distinguish themselves through high brand awareness, marketing strategies and exclusiveness.

The New Look collection is synonymous with elegant, sophisticated, fashionable, and luxurious clothing. The company’s marketing plan is varied and includes a variety advertising communications. In the future, the company hopes to develop lines of accessories for men, women, and children. These accessories will include jewelry, perfume, eyewear, watches and cologne/perfume.

Solution

New Look is responsible for developing the clothing range and supporting it with advertising campaigns and promotions. The company plans to strengthen its partnership with retailers by developing brand awareness

Market

Our customers are males between the ages of 20 and 40 with a disposable household income. There are no color restrictions within this group and customers come from many backgrounds. The New Look customer is a versatile man who can fit into any environment and is willing to pay a high price for quality clothing.

Concurrence

Companies are reorganizing to make them more efficient and to adopt new technologies. This industry has seen consolidation in the last few years. Larger companies have more market share and can cut costs. In the apparel industry, companies can operate as retailers or manufacturers (wholesalers) or both. Gap, Inc., a vertical retail company, manufactures its own clothing and accessories and markets them. VG Corporation is a producer and sells only to retail channels. Tommy Hilfiger is a company that does both: it sells its products both to retailers and consumers (through outlets).

Why Us?

We offer an alternative to the existing clothing lines. Our lines are unique, so your coworkers and other fashion-conscious friends won’t be able to buy the same thing. We are also highly aware of trends and brands, you will be the envy of all your friends because you found us first.

Expectations

Forecast

The company’s goal was to grow its retail business into online sales, using its own branding. It will be available for sale by the end the period in other retail outlets as well as online.

Financial Highlights by Year

Financing is Required

We want to expand our design portfolio so that our owner can invest $65,000. We are also looking for a $115,000 loan to fund our business. Both will be repaid within the second year. We have a strong customer base and established relationships.